95% CalHFA Loan+3% DownPayment Assistance+$8000 Tax Credit for Bay Area First Time HomeBuyers

I have blogged about CalHFA 5% downpayment program & $8000 First Time Home Buyer Credit in my earlier posts. This post will help you  find all the details on 3% down payment assistance program.

The California Homebuyer’s Downpayment Assistance Program (CHDAP) is a deferred payment, simple interest rate junior loan not to exceed 3% of the sales price or appraised value, whichever is less. The junior loan may be combined with a CalHFA first mortgage loan that is available for only 5% downpayment.

CHDAP may be used as additional down payment or to pay closing costs as allowed by CalHFA, the Lender and the mortgage insurer/guarantor.

Borrower Eligibilty - You must meet the following requirements to qualify for this Down Payment Assistance :

  • Be a first-time homebuyer
  • Occupy the property as your primary residence
  • Your income cannot exceed HCD-defined moderate income limits established for the county in which the borrower is purchasing
  • Meet credit, income and loan requirements of the CalHFA Conventional Loan Underwriting Guidelines.

Property Eligibilty - Properties must meet the following requirements :

  • Sales price of the home cannot exceed CalHFA’s sales price limits established for the county in which the property is located
  • Be a single-family, one-unit residence, including condominium /PUD

Repayment of Junior Loan - Repayment of the principal and interest on the junior loan shall be due and payable at the earlier of the following events:

  • Transfer of title
  • Sale of the residence
  • Payoff or refinance of the first loan
  • Upon the formal filing and recording of a Notice of Default (unless rescinded)

Note that as a First Time HomeBuyer even if you use CalHFA & CHDAP, you may still be eligible for the $8000 federal First Time HomeBuyer credit. If you would like to know more about these programs, please contact me at 408.905.6261.

Originally posted at - San Jose Home Loans, FHA Loans and Mortgage rates.

______________________________________________________________________________________________________

Shashank Shekhar

Mortgage Broker/Banker | San Jose, CA

(408) 615-0655 | Shashank@ArcusLending.com

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